County, city tax collection dispute could cost taxpayers

For years, Gaston County has collected property taxes for its cities and towns at no charge.

MIchael Barrett

For years, Gaston County has collected property taxes for its cities and towns at no charge.

Last year, county commissioners announced that would change, and the expense won’t be cheap for municipalities such as Gastonia. That edict has continued to not sit well with Gastonia leaders, who feel it’s the latest evidence of the county bullying and treating them unfairly.

“As a city and county taxpayer, I’m offended. Now we’re going to have duplication of effort,” said Gastonia City Councilman Dave Kirlin, during a meeting this month. “I can’t believe the county would even consider a fee schedule like this and throw it in the face of all the municipalities. I think it’s absurd.”

Property taxes are the lifeblood of counties and cities, which use the revenue to pay staff and provide services.

Gaston County has long collected its own taxes, as well as offering to do it for free for area cities. Mount Holly is the only local city that collects its own.

The county historically benefitted by reaping interest on the city taxes it collected, before disbursing it. But low interest rates in recent years have eliminated that incentive.

With budget concerns rising, county leaders have been desperate to find new sources of revenue. So last year, they announced they will begin charging each city and rural fire district 1.5 percent of the value collected.

The fee will be phased in over three years beginning in 2014. When fully implemented, the change could bring Gaston County more than $760,000 in new annual revenue.

Belmont will eventually have to cough up $75,000 a year, and City Manager Barry Webb said last year he doesn’t find the county’s request unreasonable.

But based on current values, Gastonia’s costs would increase from $185,000 in the first year, to $565,000 in the third and each year after. Gastonia is strongly considering handling the tax collection itself, but city leaders aren’t happy about it.

Kirlin suggested offering to pay the county $50,000 a year for the service, and negotiating up from there.

“Are they going to reduce their staff if we pull out? Nothing’s going to change in their overhead cost,” he said. “Everything they get from us is to their benefit. It still takes the same number of people to lick and stick the envelopes.”

Councilwoman Brenda Craig said she considers it a discouraging sign.

“Since our new City Council (was elected), all I’ve heard from the county is, ‘Let’s work together, let’s work together,’” she said. “Now we’re getting this from them. So to me, it’s a sign they’re not walking the talk.”

You can reach Michael Barrett at 704-869-1826 or twitter.com/GazetteMike.